September 7, 2024
Coinbase-Circle re-alignment, Binance fiat hurdles, and USDC at Shopify

The global regulatory landscape is once again proving to be an inflection point for cryptocurrency companies, requiring constant adaptation to adapt to the shallow waters of regulation around the world, especially the US.

In the latest development, Coinbase and Circle have decided to disband the Center Alliance, a strategic shift driven by the need for regulatory clarity on stablecoins, likely in anticipation of upcoming legislation from the U.S. Congress.

Binance.US also this week sought legal alternatives to keep operating. The exchange announced a partnership with MoonPay to make the dollar-pegged stablecoin Tether (USDT) a new “underlying asset” for all of its transactions, giving users a way to transact in U.S. dollars while potentially avoiding potential regulation obstacle.

Meanwhile, global Binance continues to face challenges in and out. Nearly 30 days after Paysafe ended support for fiat currency transactions in Europe, users in the region are reporting difficulties with fiat currency withdrawals.

In this environment, adapting quickly is not just a strategy but a survival skill. Right now, cryptocurrency companies are dancing to songs that haven’t been written yet.

This week’s Crypto Biz explores Binance’s global ingress and egress, Coinbase-Circle realignment, Shopify’s take on USDC, and an update on blockchain data exchanges in China.

Binance Limits European Withdrawals Citing Payment Processor Issues

Customers of cryptocurrency exchange Binance are allegedly facing fiat withdrawal issues in Europe due to issues related to transfers in the Single Euro Payments Area (SEPA). A few months ago, Binance notified users that its euro banking partner, Paysafe Payment Solutions, would stop supporting the cryptocurrency exchange by September 25. After this date, users will have to update their bank details and may need to accept new bank details. The exchange said it continued to use the terms and conditions of the SEPA service. Meanwhile, in the U.S., Binance.US announced a new partnership with crypto payment company MoonPay, using the U.S. dollar-pegged stablecoin Tether (USDT) as the new “underlying asset” for all transactions, offering users the ability to trade in U.S. dollars. way of trading. Binance.US recently clashed with its banking partners in the country, with fiat deposits on the exchange banned since June.

Coinbase acquires Circle stake after Center Consortium closes

With “increasing clarity on stablecoin regulation” in the U.S. and the shutdown of the Central consortium, Coinbase and Circle have redefined their relationship with each other. The two organizations jointly launched the USD Coin (USDC) stablecoin in 2018 and have since managed the token through a central consortium. As the organization winds down, Circle will take on greater responsibilities, including holding smart contract keys and regulatory compliance, while Coinbase takes an equity stake in Circle. Interest income will continue to be shared among them based on their stablecoin holdings. To expand its chain coverage, USDC will also launch Polkadot, Optimism, Near, Arbitrum, and Cosmos networks.

Shopify will accept USDC payments through Solana

E-commerce giant Shopify has added Solana Pay to its pool of payment options, allowing millions of merchants to use the platform to accept transactions in cryptocurrencies, starting with payments in the U.S. Dollar Coin (USDC) stablecoin. Solana reportedly plans to add other altcoins to the platform in the coming months, including its native SOL (SOL) token and meme token Bonk (BONK). Shopify estimates that 10% of e-commerce transactions in the US, or a global e-commerce market of $444 billion, occur through its platform. The network’s average fee is $0.00025 per transaction, while credit card fees range from 1.5% to 3.5%. In the last epoch, Solana users paid an average transaction fee of 0.000009664 SOL.

China launches blockchain-powered data exchange

Chinese government officials have launched a new data exchange platform powered by blockchain technology, with more than 300 companies including Alibaba Cloud and Huawei participating in the debut of the exchange platform. According to local news reports, the new Hangzhou data exchange will facilitate the trading of corporate information technology data, ensuring that exchange transactions are immutable and traceable. Despite cracking down on private blockchain companies for much of this year, China remains a staunch supporter of government-controlled Web3 initiatives.

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